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Peer-To-Peer Transactions Are No More Free For UPI & IMPS. Read

Nearly two years after operationalisation of the Unified Payment Interface (UPI), banks have started moving to charge for peer-to-peer payments on the new platform. Country’s largest lender State Bank of India has came out with charges with effect from June 1, while the second largest private sector lender HDFC Bank has also gone public with its rate structure which will be effective July 10.

The UPI platform is averaging around one crore transactions with a value of Rs 2,900crore per month, an NPCI (National Payments Corporation of India) official said, adding the number of transactions needs to be at least 2-3crore per month for the charges to set in.

The NPCI official said there may be a review on the subject, saying there can be a meeting with bankers which can be called in the next two months to assess the situation. It was, however, not immediately clear if the P2P transactions on the BHIM App launched by Prime Minister Narendra Modi, will also be chargeable. When contacted, SBI’s deputy managing director Manju Agarwal acknowledged that the bank has put out a circular on UPI charges on its website, but promised to withdraw it soon.

SBI is charging Rs 5 per transaction of up to Rs 1lakh, Rs 15 for transactions between Rs 1lakh-2lakh and Rs 25 for those between Rs 2lakh and Rs 5lakh, while HDFC Bank is proposing Rs 3 for transactions of up to Rs 25,000 and Rs 5 for those between Rs 25,000 and Rs 1lakh.